Does Ford Have the Winning Strategy to Push More Folks Into Hybrids?

Ford  Motor Company will up the ante this fall, offering a hybrid in their entry-level premium luxury sedan, the MKZ, for the same price as their non-hybrid gasoline model. This is a first in the industry. How Ford is able to do this no one knows as of yet.

Since hybrids were first introduced by Toyota, they've always commanded a premium price, anywhere from $1,500 to $4,500 over a similar non-hybrid model. Most consumers have been unwilling to fork over the extra dough needed to attain a 10 to 25 percent improvement in mileage.

Over the years the federal government has stepped-in, offering tax credits to help offset the premium price being charged for hybrids. However, Ford, Honda and Toyota no longer qualify for tax credits, since those automakers have met the government production qualifications.

It should be interesting to see how many of Lincoln's MKZ customers opt for the hybrid over the gasoline model, since they'll be basically priced the same. Ford officials hasn't said if they'll realign the pricing of their other hybrids. If this experiment works, this could be the push needed by the industry to encourage more consumers to buy a hybrid. It will be interesting to see if the other automakers fall in line with their pricing strategy, too. So far, hybrids represent less than 2.5 percent of total new-vehicle sales.